[Congressional Record Volume 146, Number 100 (Thursday, July 27, 2000)]
[Senate]
[Pages S7884-S7886]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN:
  S. 2971. A bill to amend the Clean Air Act to phase out the use of 
methyl tertiary butyl ether in fuels or fuel additives, to promote the 
use of renewable fuels, and for other purposes; to the Committee on 
Environment and Public Works.


                 clean and renewable fuels act of 2000

  Mr. HARKIN. Mr. President. I am introducing today legislation 
designed to address the extensive problems that have been caused by the 
gasoline additive methyl tertiary butyl ether (MTBE) and to make 
appropriate revisions to the reformulated gasoline (RFG) program in the 
Clean Air Act.
  It has become absolutely clear that MTBE has to go. Even in Iowa, 
where we are not required to have oxygenated fuels or RFG, a recent 
survey found a surprising level of water contamination with MTBE. So my 
legislation requires a phased reduction in the use of MTBE in motor 
fuel and then a prohibition on MTBE in fuel of fuel additives beginning 
three years after enactment. Retail pumps dispensing gasoline with MTBE 
would be labeled so that consumers know what they are buying. And in 
order to facilitate an orderly phase-out of MTBE, EPA may establish a 
credit trading system for the dispensing and sale of MTBE.
  My legislation recognizes the benefits that have been provided by the 
oxygen content requirement in the reformulated gasoline program. Oxygen 
added to gasoline reduces emissions of carbon monoxide, toxic compounds 
and fine particulate matter. So my legislation continues the oxygen 
content requirement, but it does allow for certain actions that would 
alleviate concerns about whether alternative oxygen additives will be 
available after MTBE is removed from gasoline. The bill allows for 
averaging of the oxygen content upon a proper showing and it also would 
allow for a temporary reduction or waiver of the minimum oxygen content 
requirement in very limited circumstances.
  The legislation also ensures that all health benefits of the 
reformulated gasoline program are maintained and improved. The bill 
includes very strong provisions to ensure that there is no backsliding 
in air quality and health benefits from cleaner burning reformulated 
gasoline. The petroleum companies would also be prohibited from taking 
the pollutants from gasoline in some areas and putting them back into 
gasoline in other areas of the country that are not subject to the more 
stringent air quality standards. Those are referred to as the anti-
dumping protections. My bill places tighter restrictions on highly 
polluting aromatic and olefin content of reformulated gasoline.
  My legislation also recognizes the important role of renewable fuels 
in improving our environment, building energy security for our nation, 
and increasing farm income, economic growth and job creation, 
especially in rural areas. The legislation creates a renewable content 
requirement for gasoline and for diesel fuel.
  Overall, this legislation will get MTBE out of gasoline, maintain and 
improve the air quality and health benefits of the reformulated 
gasoline program and the Clean Air Act, and put our nation on a solid 
path toward greater use of renewable fuels.
  I ask unanimous consent that a section-by-section summary of my 
legislation be printed in the Record. I urge my colleagues to support 
this important legislation.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

   Section-by-Section Summary--Clean and Renewable Fuels Act of 2000

     Section 1. Short title
       The bill may be cited as the ``Clean and Renewable Fuels 
     Act of 2000''
     Section 2. Use and cleanup of methyl tertiary butyl ether
       Prohibition Except in Specified Nonattainment Areas: 
     Section 211(c) of the Clean Air Act is amended to provide 
     that beginning January 1, 2001, a person shall not sell or 
     dispense to ultimate consumers any fuel or fuel additive 
     containing MTBE in any area that is not a specified 
     nonattainment area in which reformulated gasoline is required 
     to be used and in which MTBE was used to meet the oxygen 
     content requirement prior to January 1, 2000.
       Interim Period for Use of MTBE: The Administrator shall 
     issue regulations requiring, during the one-year period 
     beginning one year after enactment, a one-third reduction in 
     the quantity of MTBE that may be sold or dispensed for use in 
     a fuel or fuel additive, and during the one-year period 
     beginning two years after enactment, a two-thirds reduction 
     in the quantity of MTBE that may be sold or dispensed for use 
     in a fuel or fuel additive. In no area may the quantity of 
     MTBE sold or dispensed for use as a fuel or fuel additive 
     increase.
       Basis for Reductions; Equitable Treatment: The basis for 
     reductions shall be the quantity of MTBE sold or dispensed 
     for use as a fuel or fuel additive in the United States 
     during the one-year period ending on the date of enactment. 
     The regulations requiring such reductions shall to the 
     maximum extent practicable provide for equitable treatment on 
     a geographical basis and among manufacturers, refiners, 
     distributors and retailers.
       Trading of Authorizations to Sell or Dispense MTBE: To 
     facilitate the most orderly and efficient reduction in the 
     use of MTBE, the regulations may allow the sale and purchase 
     of authorizations to sell or dispense MTBE for use in a fuel 
     or fuel additive.
       Labeling: The Administrator shall issue regulations 
     requiring any person selling or dispensing gasoline that 
     contains MTBE at retail prominently to label the gasoline 
     dispensing system with a notice stating that the gasoline 
     contains MTBE and providing such information concerning the 
     human health and environmental risks of MTBE as the 
     Administrator determines appropriate.
       Prohibition on Use of MTBE or Other Ethers: Effective three 
     years after enactment, a person shall not manufacture, 
     introduce into commerce, offer for sale, sell, or dispense a 
     fuel or fuel additive containing MTBE or any other ether 
     compound. The Administrator may waive the prohibition on an 
     ether compound other than MTBE upon a determination that it 
     does not pose a significant risk to human health or the 
     environment. The Administrator may require a more rapid 
     reduction (including immediate termination) of the quantity 
     of MTBE sold or dispensed in an area upon a determination of 
     MTBE contamination or a substantial risk or contamination.
       State Authority to Regulate MTBE: A State may impose such 
     restrictions, including a prohibition, on the manufacture, 
     sale or use of MTBE in a fuel or fuel additive as the State 
     determines appropriate to protect human health and the 
     environment.
       Remedial Action Regarding MTBE Contamination: MTBE 
     contamination would be prioritized in state source water 
     assessment programs. EPA shall issue guidelines for MTBE 
     cleanup and may enter into cooperative agreements for, and 
     provide technical assistance to support, voluntary pilot 
     programs for the cleanup of MTBE and the protection of 
     private wells from MTBE contamination.
     Section 3. Reformulated gasoline--in general; oxygen content
       Opt-in Areas; General Provisions: Regulations issued for 
     the reformulated gasoline program shall apply to specified 
     nonattainment areas and opt-in areas. The regulations shall 
     require the greatest possible reduction in emissions of ozone 
     forming volatile organic and other compounds and emissions of 
     toxic air pollutants and precursors of toxic air pollutants.
       Waiver of Per-Gallon Oxygen Content Requirement: The 
     Administrator shall issue regulations establishing a 
     procedure providing for the submission of applications for a 
     waiver of any per-gallon oxygen content requirement otherwise 
     established and the averaging of oxygen content over an 
     appropriate period of time, not exceeding a year. After 
     consultation with the Secretary of Energy and the Secretary 
     of Agriculture, the Administrator shall grant a petition for 
     oxygen averaging where necessary to avoid a shortage or 
     disruption in supply of reformulated gasoline, to avoid 
     excessive prices for reformulated gasoline, or to facilitate 
     attainment by the area of a national ambient air quality 
     standard. The Administrator shall ensure that the human 
     health and environmental benefits of the reformulated 
     gasoline program are fully maintained during the period of 
     any waiver.
       Temporary Reduction of Oxygen Content Requirement: Upon 
     application of a state, if the Secretary of Energy with the 
     concurrence of the Secretary of Agriculture finds that there 
     is an insufficient supply of oxygenates in an area the 
     Administrator

[[Page S7885]]

     may temporarily reduce or waive the oxygen content 
     requirement for the area to the extent necessary to ensure an 
     adequate supply of reformulated gasoline. A temporary waiver 
     would be effective for 90 days, or a shorter period if a 
     sufficient supply of oxygenates exists, and may be extended 
     for an additional 90-day period. The regulations shall ensure 
     that the human health and environmental benefits of the 
     reformulated gasoline program are fully maintained during the 
     period of any temporary waiver of the oxygen content 
     requirement.
     Section 4. Limitations on aromatics and olefins in 
         reformulated gasoline
       Aromatic Content: The aromatic hydrocarbon content of 
     reformulated gasoline shall not exceed 22 percent by volume; 
     the average aromatic hydrocarbon content shall not exceed the 
     average aromatic hydrocarbon content of reformulated gasoline 
     sold in either calendar year 1999 or calendar year 2000; and 
     no gallon of reformulated gasoline shall have an aromatic 
     hydrocarbon content in excess of 30 percent.
       Olefin Content: The olefin content of reformulated gasoline 
     shall not exceed 8 percent by volume; the average olefin 
     content shall not exceed the average olefin content of 
     reformulated gasoline sold in either calendar year 1999 or 
     calendar year 2000; and no gallon of reformulated gasoline 
     shall have an olefin content in excess of 10 percent.
     Section 5. Reformulated gasoline performance standards
       Emissions of Volatile Organic Compounds: Required 
     reductions in VOC emissions shall be on a mass basis and, to 
     the maximum extent practicable using available science, on 
     the basis of ozone forming potential of VOCs and taking into 
     account the effect on ozone formation of reducing carbon 
     monoxide emissions.
       Emissions of Toxic Air Pollutants and Precursors: The 
     required reductions shall apply to toxic air pollutants or 
     precursors of toxic air pollutants. The required emissions 
     reductions shall be on a mass basis and, to the maximum 
     extent practicable using available science, on the basis of 
     relative toxicity or carcinogenic potency, whichever is more 
     protective of human health and the environment.
     Section 6. Anti-backsliding
       Ozone Forming Potential: The Administrator shall revise 
     performance standards to ensure that the ozone forming 
     potential, taking into account all ozone precursors, of the 
     aggregate emissions during the high ozone season from 
     baseline vehicles using reformulated gasoline does not exceed 
     the ozone forming potential of emissions when using 
     reformulated gasoline that complies with the regulations in 
     effect on January 1, 2000.
       Specified Pollutants: The Administrator shall revise 
     performance standards to ensure that the aggregate emissions 
     of specified pollutants or their precursors when using 
     reformulated gasoline do not exceed the aggregate emissions 
     of such pollutants or precursors from baseline vehicles when 
     using reformulated gasoline that complies with the 
     regulations in effect on January 1, 2000. The specified air 
     pollutants are toxic air pollutants, categorized by degree of 
     toxicity and carcinogenic potency; particulate matter and 
     fine particulate matter; pollutants regulated under section 
     108; and such other pollutants as the Administrator 
     determines should be controlled to prevent deterioration of 
     air quality and to achieve attainment of a national ambient 
     air quality standard in one or more areas.
       Adjustments for Carbon Monoxide Emissions: In carrying out 
     the ozone anti-backsliding requirement, the Administrator 
     shall adjust the performance standard to take into account 
     carbon monoxide emissions that are greater or less than the 
     carbon monoxide emissions achieved by reformulated gasoline 
     containing 2 percent oxygen by weight and meeting other 
     performance standards. An adjustment to the VOC emission 
     reduction requirements under the provisions of this section 
     shall be credited toward the requirement for VOC emissions 
     reductions under section 182 of the Clean Air Act.
       Updating of Baseline Vehicles: Not later than 3 years after 
     enactment, the Administrator shall revise the performance 
     standards to redefine the term ``baseline vehicles'' as 
     used in the anti-backsliding provisions to mean vehicles 
     representative of vehicles (including off-road vehicles) 
     in use as of January 1, 2000.
     Section 7. Certification of fuels
       Combined Reductions of Ozone Forming VOCs and Carbon 
     Monoxide: In certifying a fuel formulation or slate of fuel 
     formulations as equivalent to reformulated gasoline, the 
     Administrator shall determine whether the combined reductions 
     in emissions of VOCs and carbon monoxide result in a 
     reduction in ozone concentration equivalent to or greater 
     than the reduction achieved by a reformulated gasoline 
     meeting the statutory formula and performance requirements. A 
     certified fuel formulation or slate of fuel formulations 
     shall receive the same VOC reduction credit under section 182 
     as a reformulated gasoline meeting the statutory formula and 
     performance requirements.
       Carbon Monoxide Credit: In determining combined reductions 
     in emissions of VOCs and carbon monoxide by a fuel 
     formulation or slate of fuel formulations the Administrator 
     shall consider the change in carbon monoxide emissions from 
     baseline vehicles attributable to an oxygen content that 
     exceeds any minimum oxygen content for reformulated gasoline 
     applicable to the area and may consider the change in carbon 
     monoxide emissions attributable to such oxygen content from 
     vehicles other than baseline vehicles.
       Toxic Air Pollutants and Precursors: To be certified as 
     equivalent to reformulated gasoline, the fuel or slate of 
     fuels must achieve equivalent or greater reduction in 
     emissions of toxic air pollutants or precursors of toxic air 
     pollutants than are achieved by a reformulated gasoline 
     meeting the statutory formula and performance requirements.
       Certification Subject to Anti-Backsliding Rules: The 
     provisions on certification would clearly specify that a 
     requirement for certification of a fuel formulation or slate 
     of fuel formulations is compliance with the anti-backsliding 
     provisions.
     Section 8. Additional opt-in areas
       Upon application of the Governor of a State, the 
     Administrator shall apply the requirements relating to 
     reformulated gasoline in any area of the State that is not a 
     covered area or a classified area. The application shall be 
     published in the Federal Register as soon as practicable 
     after it is received.
     Section 9. Anti-dumping protections
       Updating Baseline Year; Additional Pollutants Covered: The 
     Administrator shall issue regulations to ensure that gasoline 
     sold or introduced into commerce by a refiner, blender or 
     importer (other than gasoline covered by the reformulated 
     gasoline rules) does not result in average per-gallon 
     emissions of VOCs, oxides of nitrogen, carbon monoxide, toxic 
     air pollutants, particulate matter, fine particulate matter, 
     or any precursor of such pollutants, in excess of 
     the emissions of each pollutants attributable to gasoline 
     sold or introduced into commerce by the refiner, blender 
     or importer in calendar year 1999 or calendar year 2000, 
     in whichever year the lower emissions occurred. In the 
     absence of adequate and reliable data for a refiner, 
     blender or importer for calendar year 1999 or calendar 
     year 2000, the Administrator shall substitute baseline 
     gasoline for 1999 or 2000 gasoline.
       Average Per-Gallon Emissions: In applying the anti-dumping 
     provisions, average per-gallon emissions shall be measured on 
     the basis of mass, and to the maximum extent practicable 
     using available science, on the basis of ozone-forming 
     potential, degree of toxicity and carcinogenic potency.
       Aromatic Hydrocarbon and Olefin Content: Anti-dumping 
     requirements also apply to ensure against increases in 
     aromatic hydrocarbon or olefin content of gasoline relative 
     to the levels in calendar year 1999 or calendar year 2000, in 
     whichever year the content was lower.
       Anti-Dumping Compliance: The Administrator shall issue 
     regulations providing that an increase in oxides of nitrogen 
     or volatile organic compounds caused by adding oxygenates may 
     be offset by an equal or greater reduction in emissions of 
     VOCs, carbon monoxide or toxic air pollutants. In making this 
     determination, the Administrator shall measure emissions on 
     the basis of mass, and to the maximum extent practicable 
     using available science, on the basis of ozone-forming 
     potential, degree of toxicity and carcinogenic potency.
     Section 10. Renewable content of gasoline and diesel fuel
       Renewable Content of Gasoline: Not later than September 1, 
     2000, the Administrator shall issue regulations requiring 
     each refiner, blender or importer of gasoline to comply with 
     renewable content requirements. On a quarterly basis, all 
     gasoline sold or introduced into commerce shall contain the 
     applicable percentage of fuel derived from a renewable 
     source. The applicable percentages increase from 1.3 percent 
     in 2000, to 2.4 percent in 2004 (coinciding with the expected 
     prohibition of MTBE by late 2003) and to 4.2 percent in 2010 
     and thereafter.
       Fuel Derived From A Renewable Source: The definition of 
     fuel derived from a renewable source includes fuel produced 
     from agricultural commodities, products and their residues; 
     plant materials, including grasses, fibers, wood and wood 
     residues; dedicated energy crops and trees; animal wastes, 
     byproducts and other materials of animal origin; municipal 
     wastes and refuse derived from plant or animal sources; and 
     other biomass that is used to replace or reduce the quantity 
     of fossil fuel in a fuel mixture used to operate a motor 
     vehicle, motor vehicle engine, nonroad vehicle, or nonroad 
     engine.
       Credit Program: The Administrator shall establish a program 
     for renewable fuel credit trading on a quarterly average 
     basis. The Administrator, in consultation with the Secretary 
     of Energy and the Secretary of Agriculture, may issue 
     regulations governing the generation and trading of such 
     credits in order to prevent excessive geographical 
     concentration in the use of fuel derived from renewable 
     sources that would tend unduly to affect the price, supply or 
     distribution of such fuels; impede the development of the 
     renewable fuels industry; or otherwise interfere with the 
     purposes of the renewable fuel content requirement.
       Waiver: A waiver from the renewable content requirement may 
     be granted for an area in whole or in part after consultation 
     with the Secretary of Agriculture and the Secretary of 
     Energy. The waiver may only be granted for an area upon a 
     determination that the renewable content requirement would 
     severely harm the economy or environment of the area, or 
     there is inadequate

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     domestic supply or distribution capacity with respect to 
     fuels from renewable sources and only after a determination 
     that use of the credit trading program would not alleviate 
     the circumstances on which the petition is based. A waiver 
     shall terminate after one year, or at such earlier time as is 
     determined appropriate by the Administrator, but may be 
     renewed after consultation with the Secretary of Agriculture 
     and the Secretary of Energy.
       Labeling: The Administrator shall issue guidance to the 
     States for labeling at the point of retail sale of fuel 
     derived from a renewable source and the major fuel additive 
     components of the fuel.
       Reports to Congress: Concerning the renewable content 
     requirement, the Administrator shall report to Congress at 
     least every 3 years (1) regarding reductions in emissions of 
     air pollutants; (2) in consultation with the Secretary of 
     Agriculture, regarding the impact on demand for farm 
     commodities, biomass and other material used for producing 
     fuel derived from renewable sources; the adequacy of food and 
     feed supplies; and the effect upon farm income, employment 
     and economic growth, particularly in rural areas; and (3) in 
     consultation with the Secretary of Energy, describing 
     greenhouse gas emission reductions and assessing the effect 
     on U.S. energy security and reliance on imported petroleum.
       Renewable Content of Diesel Fuel: Not later than September 
     1, 2000, the Administrator shall issue regulations applicable 
     to each refiner, blender, or importer of diesel fuel to 
     ensure that diesel fuel sold or introduced into commerce in 
     the United States complies with renewable content 
     requirements. The Administrator shall establish requirements 
     for the content of diesel fuel that is derived from renewable 
     sources similar to the requirements of the program for 
     gasoline, using the same definition of fuel derived from a 
     renewable source. The regulations shall establish applicable 
     percentages by volume for renewable content for diesel fuel 
     on a quarterly basis, require a gradual increase in the 
     renewable content of diesel fuel, and require that for 
     calendar year 2010 and thereafter the applicable percentage 
     shall be 1.0 percent. The regulations shall provide for 
     credit trading and waiver applications on similar terms to 
     those of the program for gasoline.
       Prevention of effects on Highway Apportionments: States 
     would be protected from any adverse impacts as a consequence 
     of the sale and use within a State of ethanol in determining 
     the payments attributable to a State paid into the Highway 
     Trust Fund and the minimum guarantee based on payments into 
     the Highway Trust Fund.
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